DollarLink News -- December 31, 1995

Enhancements Added

Regression Lines and Standard Deviations Lines

The regression lines that we introduced last month will now ask the user if he wants to see lines parallel to the regression line drawn one standard deviation above and below the main regression line.

This is a convenient addition to the regression lines tool because it creates a channel where it becomes easier to see possible breakouts.

Another addition:

The user is now also asked if he wants to use all the datapoints in the underlying chart or just the last N. If the user indicates N, then DollarLink will ask the user to enter a number. The idea here is to allow the user to create a regression line that would attempt to fit all the data in the chart, or one that would attempt to put more emphasis on the latest N datapoints.

Global Options Sorting: Puts or Calls

Signal datafeed only

One of the features of DollarLink is the ability to rank (by percent change and/or volume) up to 20 stocks or stock options on an entire exchange without those stocks/options being in the user portfolio.

Thus, you can have the 20 best performers (in real time) on the whole NYSE, for example, or, say, the 20 most active stocks on the NASDAQ with the price between $10 and $33 per share.

This powerful feature can also operate on equity and index options. You can specify similar price and volume constraints and DollarLink will construct a live, constantly changing database of options that meet the constraints.

Until now this database did not distinguish between puts and calls, so some of our customers, who have become quite dependent on this unique feature in DollarLink, have requested us to add the choice of puts or calls to the list of constraints.

Now, when you go to the S)trategies, S)et, etc. section where you specify what exchange, price and/volume range you want the globally ranked database to concentrate on, it will ask you if you want puts, calls, or both (if you have specified OPRA as the exchange).

This is convenient if you want to concentrate, say, on calls only. Also, for example, on a down day, you may want to look more at top-ranked puts than at calls.

Status of DollarWin Signal Report

As previously reported here, we produce a mutual funds advisory electronic newsletter available as a Signal Report. The report follows about 300 mutual funds on a daily basis and makes switching decisions for four model portfolios every Friday. The report, called DollarWin, is broadcast daily over the Signal datafeed. It is also available now through the Internet.

The model portfolios in DollarWin differ by the number of mutual funds in each portfolio. (In theory, the more funds, the lower the risk.) Thus, we have a two-, four- and eight-fund portfolios. In addition, we also have a Fidelity-Selects-only four-fund portfolio. DollarWin is more aggressive than other mutual funds newsletters, with funds being held on average about two months. DollarWin uses technical analysis exclusively to make its decisions.

In 1995, a year when it was difficult to beat the general market, the DollarWin model did extremely well. The two-fund model finished up 46.9%. The four-fund model finished up 47.9%. The eight-fund model finished up 46.2% and the four-fund Selects model finished up 40%. (For comparison, the S&P 500 finished up 34%.)

If you are interested in trying DollarWin via Signal, call DBC at 800-S-MARKET. If you are interested in DollarWin via the Internet, or if you have specific questions on DollarWin, e-mail or fax us.

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